Physical Supply and Use Tables in SEEAW: Main Concepts and Recording of Flows

1. Physical Supply and Use Tables in SEEAW: Main concepts and recording of flows Technical Workshop on the Preparation of Water Accounts in Latin America1-4 June 2009Santiago, Chile Ricardo Martinez, CONAGUA Michael Vardon, United Nations Statistics Division

2. Outline • What do Physical Supply-Use Tables (PSUT) measure? • Concepts • The standard tables of SEEA Water • Supplementary tables • Some data recording issues

3. What do PSUT measure? PSUT describe in physical units • The exchanges of water between the environment and the economy (abstraction and returns) • The exchanges of water within the economy (supply and use within the economy)

4. Why compiling physical supply and use tables? They are important because • They allow for the identification of the industries/sectors which put pressure on the environment via extraction and use • They indicate the industries/sectors consuming the most water • Together with monetary data (e.g. from the hybrid accounts), they provide information on water use efficiency and other information useful for water allocation policies

5. SEEA WaterOverview • Stocks and flows • Economy and environment This is a complex system, so it is useful to simplify it

6. To the environment (returns) From the environment (abstraction) Supply Use To another economic unit From another economic unit Basic concepts and definitions Evapotranspiration Consumption Economic activity/ Households Consumption

7. Water Use Water use: water intake of industries and households for production and consumption activities. Water Use is the sum of water use within the economy and water use from the environment. Water use within the economy: water intake for production and consumption activities, which is distributed by industries or households and by the Rest of the World (Imports). Water use from the environment: water abstracted from water resources, seas and oceans, and precipitation collected by industries and households for production and consumption activities, including rainfed agriculture.

8. Water Supply Water supply: water leaving/flowing-out from an economic unit (Industries, Households and rest of the world). Water supply is the sum of water supply to other economic units and water supply to the environment. Water supply to the environment (also Water returns): water returned into the environment during a given period of time after use. Returns can be classified according to the receiving media (i.e. water resources and sea water) and to the type of water (e.g. treated water, cooling water, etc.). Water supply within the economy: water distributed to households and industries (including agriculture) and to the rest of the world (exports). Water supply within the economy is net of losses in distribution.

9. Organisation of the Physical Supply-Use Tables • By columns, industries (ISIC Rev.4), households and the Rest of the world • By rows, types of flows Within the economy the SNA identity “Supply is equal to the Use” holds They consist of three parts: • Abstraction (in-flow) of water from the environment to the economy • Flows within the economy • Returns (or out-flows) of water from the economy to the environment

10. Flows from the environment to the economy

11. Flows within the economy

12. Flows from the economy to the environment

13. Standard PSUT

14. Water consumption Water consumption: part of water use which is not distributed to other economic units and does not return to the environment (to water resources, sea and ocean) because during use it has been incorporated into products, consumed by households or livestock. It is calculated as a difference between total use and total supply, thus it may include losses due to evaporation occurring in distribution and apparent losses due to illegal tapping and malfunctioning metering

15. Supplementary tables and information • The standard tables are the minimum required to meet agreed international standards • Countries can disaggregate the industries and line items to suite individual needs • In many case it is useful to have these data separately identified in the data collection, estimation and compilation processes • If the data are available and of sufficient quality then making it available will enhance it usefulness to decision makers and others

16. Supplementary information: Abstraction for own use Line item 1.a. abstraction for own use: • Hydroelectric power generation • Irrigation water • Mine water • Urban runoff • Cooling water • Other

17. Supplementary information: Use of water received from other economic units Line item 2. Use of water received from other economic units. This can be disaggregated to show: • Water abstracted from the environment for distribution (Distributed water) • Reused water • Wastewater to sewerage • Note that reuse water and wastewater are shown in the standard supply table in line items 4.a and 4.b, respectively.

18. Supplementary information: Supply of water to other economic units Line item 4. Supply of water to other economic units. This can be disaggregated to show: • Water abstracted from the environment for distribution (Distributed water) • Reused water (already shown, item 4.a) • Wastewater to sewerage (already shown, item 4.b) • Desalinated water • Note: Desalinated is included in the use table (line item 1.ii.2) as an abstraction from the environment.

19. Additional information: further disaggregation industries ISIC Rev.4, 1-3 • Agriculture (ISIC Rev.4, 1) • Forestry (ISIC Rev.4, 2) • Fishing (ISIC Rev.4, 3) ISIC Rev.4, 5-33 and 41-43 • Mining (ISIC Rev.4, 5-9) • Manufacturing (ISIC Rev.4, 10-32) ISIC Rev.4, 38,39 and 45-99 • Accommodation (ISIC Rev.4, 55) • Food service (ISIC Rev.4, 56) • Public Administration (ISIC Rev.4, 84) • Etc…

20. Matrix of transfers within economy • This table is symmetrical. • Is done to match line items 2 and 4 of the supply and use tables • Can be done for each of the components of line items 2 and 4 (i.e. distributed water, reuse water and wastewater to sewerage) • It construction allows you to check that supply = use within the economy.

21. Supplementary information: Matrix of flows within the economy

22. Some data recording issues • Water supply and sewerage services are provided by the same enterprise • Losses in distribution • Water supply industry (ISIC Rev.4, 36): intra-industry transfers • Hydro-electric power (classification enterprises and recording) • Mine ‘de-watering’ • Urban run-off • Cooling water

23. Enterprises supplying both water and sewerage services • In many countries it is common for one enterprise to provide both natural water (CPC v.2, 1800) and sewerage services (CPC v.2, 941) • In national accounts they will coded according to which product generates the highest value output. • If it is natural water (CPC v.2, 1800) then it will be Water Supply (ISIC Rev.4, 36). • If it is sewerage services (CPC v.2, 941) then it will be Sewerage (ISIC Rev.4, 37) • In practice many countries do not separate these industries in the national accounts

24. Enterprises supplying both water and sewerage services • In SEEAW these enterprises should be split into two establishments • One supplying natural water (CPC v.2, 1800) and coded to Water Supply (ISIC Rev.4, 36). • The other supplying sewerage services (CPC v.2, 941) and coded to Sewerage (ISIC Rev.4, 37) • If they are not split then the flows to and from these industries and to other industries becomes less clear • If they cannot be split then the line items 2 (Use of water from other economic units) and 4 (supply of water to other economic units) should be subdivided to show wastewater to sewerage, reuse water and distributed water (as shown earlier in the presentation)

25. Losses in distribution • This is an important policy area and because they are not shown explicitly in the standard supply and use table countries should consider preparing the SEEAW supplementary table on losses in distribution

26. Losses in distribution: treatment in standard tables • Water losses in distribution is thevolume of water lost during transport through leakages, theft and evaporation between a point of abstraction and a point of use, and between points of use and reuse. • Water supply within the economy is recorded net of water losses in distribution • Losses are recorded in water abstractions from the environment, leakages are recorded in water returns and may be separately recorded under water consumption • The are not explicitly identified

27. Supplementary information:Losses in distribution

28. Water Supply Industry (ISIC Rev.4, 36) – Intra-industry transfers • In some countries different enterprises within the water industry transfers water between themselves • It is important to understand these transfers: • To avoid double counting • For policy analysis and decision makers, especially where the price of water varies (for example between regions and between water “wholesalers” and water “retailer”)

29. Intra industry supply Water Supply Industry ISIC Rev.4, 36 Water users Enterprise A ISIC 36 120 50 Enterprise C ISIC 36 50 180 Enterprise B ISIC 36 Enterprise D ISIC 36 40 40 Enterprise E ISIC 36 140 140

30. Water Supply Industry (ISIC Rev.4, 36) – Intra-industry transfers • The standard physical supply and use tables do not record these within industry transfers • In countries where this occurs a table showing these should be developed to assist the compilation process and could also be presented as supplementary information • SEEAW does not have a standard table for intra-industry transfer this but one has been developed by UNSD

31. Water Supply Industry (ISIC Rev.4, 36) – intra-industry transfers

32. Hydro-electric power • Hydro-electric power can be a very large water user in countries. While the water is used it is not consumed • Even though the water is not consumed it is important to record these flows because: • The water is an essential input to the output of hydro-electricity (and hence an important consideration in decision making and policy analysis) • This use may take place at the expense of other uses • The water made available by the infrastructure that supports hydro-electric power and the water available after use are important water sources for industry

33. Hydro-electric power: classification of enterprisesIs it the Electricity Supply or Water Supply Industry? • The enterprise engaged in the production of hydro-electricity produce two products or outputs • Electricity (CPC v.2, 171) • Natural water (CPC v.2, 1800) • In most case the value of the output of energy exceeds the value of the output of water. • As such hydro-electric enterprises are mostly classified to the Electricity Supply Industry (ISIC Rev. 4, 35) in the national accounts of countries • This creates a problem for recording flows in the physical supply and use tables (and hybrid tables)

34. The solution to the hydro-electric classification problem • Split the hydro-electricity enterprise into two establishments • One produces Electricity (CPC v.2, 171) and is classified to Electricity Supply (ISIC Rev. 4, 35) • The other producers Natural water (CPC v.2, 1800) and is classified to Water Supply (ISIC Rev. 4, 36) • For the establishment classified to ISIC 35 water is recorded as an abstraction for own use, with the volume of water returned equal to the amount abstracted. This results in zero (0) consumption • For the establishment classified to ISIC Rev.4, 36 the water is recorded as an abstraction for distribution

35. Recording of water use for Electricity Supply (ISIC Rev.4, 35) Amount of water abstracted is recorded as an abstraction for own use of surface in the use table Amount of water returned is recorded is the supply table, as return to surface water If the amount returned is equal to the amount abstracted then the consumption is zero. If pollution has been added then this would be recorded in the emission account

36. Alternative solution to the hydro-electric classification problem If it is impossible to split the hydro-electricity enterprise into two establishments then: • In the use table the water should be recorded in line item 1 as an abstraction form the environment, however you will not be able to fill in either line item 1.a or 1.b as it is both an abstraction for distribution and an abstraction for own use • In the supply table it will be recorded in line item as a supply to other economic units • It IS NOT recorded in line item 5 as a Total return as it is the first treatment.

37. Alternative recording of water use and supply by Electricity Supply (ISIC Rev.4, 35) Amount of water abstracted is recorded in use table in Total abstraction (item 1) but not in items 1.a or 1.b Amount of water supplied to other economic units is recorded is the supply table. No return to the environment is recorded. If the amount supplied is equal to the amount abstracted then the consumption is zero.

38. Mine de-watering • In underground mining water is often pumped out of the mine • It is important to record these flows as • This may prevent others from using the groundwater • The groundwater is usually discharge into surface water and may be of a different quality due to natural processes or because of pollutants added • In arid areas this may disrupt the ecology of the environment • Once on the surface it can be used by others

39. Amount of water abstracted is recorded as an abstraction for own use of groundwater in the use table Recording mine de-watering Amount of water returned is recorded is the supply table, as return to surface water If the amount returned is equal to the amount abstracted then the consumption is zero. If pollution has been added then this would be recorded in the emission account

40. Urban run-off • Urban run-off (or storm water) is the precipitation that falls on urban areas that does not evaporate or percolate into the ground but flows via overland flow, underflow or channels or is piped into a water cannel or constructed infiltration facility. • When urban run-off is collected by the sewerage or storm water system the supply and use of this water is recorded against the Sewerage Industry (ISIC Rev. 4, 37)

41. Amount of water abstracted is recorded as an abstraction from other sources in the use table Recording of urban run-off Amount of water returned is recorded is the supply table, as return to surface water or to sea If the amount returned is equal to the amount abstracted then the consumption is zero. If pollution has been added then this would be recorded in the emission account

42. Cooling water • Cooling water is defined as water which is used to absorb and remove heat • When discharge is may cause thermal pollution or have collected pollutants during use (e.g. if used in metal manufacture) • In some cases industries using water for cooling recycle it “on site”. In other cases it is abstracted and returned to the environment • You need to carefully distinguish which situation is occurring, particularly for large users of cooling water (for example coal fired electricity generators)

43. Water abstract from environment only to replace the water consumed by the industry Cooling waterCase one: Recycling Boundary of establishment Establishment using water for cooling Environment 100 80 80 Establishment may report an “intake” of 180 rather than an abstraction from environment for own use of 100. This would be a consumption of 100.Must be Very careful when interpreting data from surveys or other sources Cooling pond of establishment Water discharged to pond and then extracted from pond.

44. Cooling waterCase two: Abstraction and return Environment 100 Establishment Using water for cooling 80 Water abstracted from environment and returned to the environment. Difference is the consumption. 100 abstracted for own use – 80 returned = 20 consumption

45. Cooling water – be careful! • If you misinterpret the situation you may over or under estimate to volume of water consumed • Contact directly the large water users (e.g. coal fired electricity generators to be sure what the situation is

46. Conclusion • SEEAW uses existing international classifications (CPC and ISIC) a catagorisation of water flows to describing the flows of water within the environment, and economy as well as between the environment and economy. • Most flows are easily identified and recorded in the standard tables. • The catagoristion of the enterprises in the economy is important, particularly for enterprises hydro-electric power plants and water and sewerage service suppliers. • UNSD is

47. Contact details Ricardo Martinez CONAGUA Phone: Fax: Email: Michael Vardon UN Statistics Division New York 10017 USA Room DC2 1532 Phone: +1 917 367 5391 Fax: +1 917 963 1374 Email: vardon@un.org

48. Contact details Ricardo Martinez CONAGUA Phone: Fax: Email: